The USD/CHF pair remains one of the most bearish currency pairs amongst the FX majors, and is likely to remain under downside pressure of the coming days and weeks.
USD/CHF technical analysis indicates that the pair could decline towards the 0.9540 level, which would confirm the formation of a large head and shoulders pattern.
USD/CHF medium-term price trend
The pair remains technically bearish while trading below the 0.9920 level, and is currently under heavy downside pressure.
The recent recovery towards the 0.9760 level proved short-lived, with sellers quickly using the rally as a chance to sell the pair.
Furthermore, the USD/CHF pair failed to rally as the greenback moved higher last week, underscoring that bears are still targeting lower levels.
The Trump administration’s recent suggestion that the SNB is manipulating the value of the Swiss franc currency also failed to move the pair higher.
USD/CHF technical analysis indicates that the pair may soon fall towards the 0.9540 support level. This would help form a large head and shoulders pattern on the daily time frame.
The overall downside target of the bearish pattern is substantial, and would take the USD/CHF pair towards the 0.9000 level over the medium to long-term.
USD/CHF short-term price trend
USD/CHF analysis over the short term shows that sellers are in full control while price trades below the 0.9770 resistance level.
The USD/CHF pair has been creating bearish lower highs and lower lows, while price action has also remained extremely weak.
Looking at the four-hour chart, the 0.9730 level is currently offering the strongest form of technical resistance above the 0.9700 level.
Traders are likely to sell any rallies above the 0.9700 level, and essentially follow the prevailing bearish trend in the USD/CHF pair.
At this stage, only a sustained rally above the 0.9890 resistance level would cause serious concern for USD/CHF bears.
Overall, selling any rallies in the USD/CHF pair above the 0.9700 level appears to be a valid short-term strategy.
USD/CHF technical summary
USD/CHF analysis highlights that the pair could start to decline towards the 0.9540 level over the coming days. If the bearish target is reached it would form an extremely large bearish pattern.
USD/CHF technical analysis indicates an upcoming drop towards the 0.9540 level. Any rallies above the 0.9700 level are likely to be seen as selling opportunities.